The latest CBO analysis of the impending update to the overtime rule concludes that repealing the rule change would increase inequality, lower the incomes and increase the hours of almost a million workers, and do nothing to increase employment. The only clear beneficiaries of repeal would be business owners and shareholders, who would see higher profits from reduced payroll costs. It makes no sense to reverse the rule and take those raises away from hard-working employees.
No one can defend the old rule, which made employees paid poverty-level salaries exempt as executives or professionals. Indeed, Walmart and many other employers have already given raises to employees to put their salary above the new $47,476 threshold. The Labor Department’s new rule should be allowed to take effect on December 1. Congress should finish its work on the budget and appropriations rather than trying to take pay raises from middle class workers.